Renault reports multi-million dollar losses through June, with Nissan taking a major hit

Renault presented its first-half financial statements this Thursday, revealing losses of €11.185 billion. These results are largely influenced by the change in accounting treatment for its stake in Nissan.

Renault explained again today, in a statement, as it had already anticipated on July 1 , that it recorded a loss of 9.3 billion euros in its results, with no consequences for the cash flow, due to the change in the value it attributes to the 35% of the capital it holds in Nissan.

In addition to the accounting change, another charge of 2.3 billion euros is added for the losses of its Japanese partner in the first two quarters.

Excluding the impact of Nissan, which essentially accounts for the difference between the book value in the French group's accounts of these 35% and the stock market value as of June 30, Renault made a profit of €461 million in the first half of the year, compared to the €1,469 million it had made in the same period in 2024.

The operating margin fell to 1.653 billion euros, compared to 2.175 billion euros, representing 6% of revenue, and of this total, 989 million corresponded to the purely automotive business, compared to 1.600 million a year earlier.

The French group justifies this decline with the decline in van sales and the marketing of electric vehicles, which in the initial phase of the technology are more expensive to produce and face strong competition in the European market.

The aforementioned elements represented a negative impact of 444 million euros, but Renault admits that a large part of this will be reversed in the second half of the year.

Renault's revenue increased by 2.5% in absolute terms, to 27.64 billion euros, and by 3.6% in comparable terms, after discounting the effect of exchange rate fluctuations.

In the automotive sector, turnover grew by 0.5% in gross terms and 1.6% in comparable terms.

The new CEO, François Provost , admitted that the first-half results, in a difficult market context, were not in line with his initial "ambitions".

However, Provost insisted that management has already launched a set of measures to achieve its objectives and noted that, in addition to the net result, the Renault group's profitability continues to be a "benchmark" in the sector.

The company revised its financial outlook for the year downwards in order to "take into account the deterioration in the dynamics of the automotive market, with greater commercial pressure from its competitors and the anticipation of a continued market decline."

Specifically, it expects an operating margin "around 6.5%", instead of "at least" 7%, as estimated when it presented the annual results in February, and a cash flow of between 1,000 and 1,500 million euros.

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